Light trade volume and limited direction is expected as traders slowly move back into the complex following the long holiday break. Cattle traders have Thursday’s Cattle on Feed report to trade on during early-morning activity.
Cattle: Steady Futures: Lower Live Equiv: $152.87 +0.41*
Hogs: $1 Higher Futures: Mixed Lean Equiv: $ 92.13 -0.58**
* based on formula estimating live cattle equivalent of gross packer revenue
** based on formula estimating lean hog equivalent of gross packer revenue
Initial cattle activity Monday morning is expected to remain steady to moderately lower as traders work through the market impact of Thursday’s Cattle on Feed report. The fact that traders had an extra day to process numbers and the potential impact to the market of the elevated March cattle placements may add additional volatility to the market.
Feeder cattle placed in yards increased to 105% year-ago levels. This is 1.2% above early estimates, but within the market range. Some of the increased placement levels have likely been factored into both live cattle and feeder cattle trade, although the underlying tone at opening bell may be steady-to-weak Monday morning.
Traders are also focusing on potential seasonal support to stimulate longer-term buying activity in the complex. Cash cattle trade is expected to remain sluggish following firming cash prices last week. Showlist distribution and inventory taking will likely be the extent of cash markets Monday.